Traders write their trading rules based on what they’ve learned from the markets. In fact, trading rules are often condensed market wisdom. For new traders, trading rules offer a compass to navigate the troubled market waters. For advanced traders, trading rules open perspectives. The question is whose trading rules do you want to learn from? Who […]
How To Identify Demand and Supply Using Price Action
Want to find demand and supply in the market? Just look at the market depth screen and you will see orders to buy and sell at different prices. Those numbers show demand and supply. That’s all. You’ve found demand and supply. What can you do with it? Nothing. Now, think again. Do you really want […]
The Low Volume Hint to Explosive Moves
Stocks with high volume get all the attention. Volume means participation. It means action. It is no wonder that traders like high-volume stocks and neglect the low-volume ones. But this approach misses the potential of low-volume stocks to find explosive moves. By low-volume stocks, I am not referring to thinly traded penny stocks. A prudent trader […]
Ease of Movement Trading Strategy
Combining price and volume helps us to decipher demand and supply. But what’s the point of understanding demand and supply? We want to find the path of least resistance. For this purpose, Richard Arms’ Ease of Movement indicator fits the bill. While you can check out Ease of Movement’s formula here, you don’t need to […]
Your First Guide to Volume Spread Analysis (VSA)
You have heard of Volume Spread Analysis and the value it might add to your analysis. But it sounds like a convoluted trading method with uncommon terms like “No Demand Bar” and “Stopping Volume”. Is VSA really that inaccessible? Together, let’s take the first step to understanding VSA. With this guide, you will find that […]
Low Volume Pullback Strategy (Expanded)
Technically, a healthy trend should advance with increasing market interest. When a trend retraces temporarily, the market interest falters. The question is how do we gauge market interest? The best information we have to assess market interest is volume. High volume indicates strong market interest; low volume shows weak participation. This idea forms the basis […]
